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2 years ago

Why is compounding interest monthly better than yearly ?

Business

1 answer:

dalvyx [7]2 years ago

6 0

Answer:

More interest payments on yearly computing.

Explanation:

It is generally said that if you can get monthly annual payments compared to yearly payments take it without a thought. This statement explains a lot; normally month payments are not available, but in some case they are. In annual payments, 12 months are compounded that is why it is higher rate compared to monthly. So, monthly payments are preferred

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Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hou

azamat

Answer:

The old computer should be replaced since the differential amount of the replacing it with a new computer is $10,000

Explanation:

Old machine New machine Differential

amount

purchase cost $0 ($15,000) ($15,000)

operating costs year 1 ($24,600) ($19,600) $5,000

operating costs year 2 ($24,600) ($19,600) $5,000

operating costs year 3 ($24,600) ($19,600) $5,000

operating costs year 4 ($24,600) ($19,600) $5,000

<u>operating costs year 5 ($24,600) ($19,600) $5,000 </u>

TOTAL ($123,000) ($113,000) $10,000

4 0

3 years ago

Helppp mee please!!!give me your opinion!

k0ka [10]

Answer:

YES

Explanation:

Information systems can in fact provide solutions to a lot of organizational problems in businesses and companies. Information Systems can help collect data, statistics, and overall organization. Let's say you are looking into starting a moving business. In order to do that you need to hire employees. An information system such as Indeed can assist you with that. If you are looking to provide invoices to your customers an information system such as Quickbooks can help you with that. There are soo many Information Systems our there that can help a business with any problem.

8 0

2 years ago

The following exchange demonstrates which problem solving technique?We pay higher costs than we need to when we go bowling becau

zlopas [31]

A.Fishbone Diagram because that's the answer

6 0

3 years ago

Read 2 more answers

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is

VikaD [51]

Answer:

The straight line depreciation for the first year is $24000

Explanation:

The straight line method of depreciation charges/allocates a constant amount of depreciation through out the useful life of the asset. The straight line depreciation expense for the year is calculated as follows,

Straight line depreciation = (Cost - Salvage Value) / Estimated useful life

Straight line depreciation = (135000 - 15000) / 5 = $24000 per year

Thus, the amount of depreciation for first year under straight line method is $24000

7 0

2 years ago

You need a 30-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 7.1 perc

miskamm [114]

Answer:

$573,963

Explanation:

First, calculate the present value of the loan payments using the following formula

PVA = PMT x [ ( 1 + r )^n - 1 ] / [ r ( 1 + r )^n)

PVA = $950 x [ ( 1 + 7.1%/12 )^360 - 1] / [ 7.1%/12 ( 1 + 7.1%/12 )^360)

PVA = $141,362.32

Now calculate the difference of Value of loan and the present value of loan payment

Difference = Loan value - PV of loan payment = $210,000 - $141,362.32 = $68,637.68

This te Ballon payment in present value term, We need to determine the value at the end of the loan term.

Hence we need to calculate the future value of this payment as follow

Future value = Present vale x ( 1 + Monthly Interest rate )^numbers of months

Future value = $68,637.68 x ( 1 + 7.1%/12 )^360

Future value = $573,963.09

Future value = $573,963

Hence the ballon Payment will be $573,963

7 0

2 years ago